Given these pressures, I'd expect some enterprising folks to build an incentive based fee structure in support of long term clients. Something a bit more sophisticated than short term trading fees. Maybe this is done in a different way, but I would think one might want to use an applied load or annual fee based on the time you commit your funds for? It sounds like a situation where there is a lot of value for the portfolio manager in a stable client base, and it might be best to encourage those with a day to day mindset to invest elsewhere? Granted, big inflows mean big dollars, and perhaps even a strong manager with solid results may not attract sufficient funds to keep the business going.... I freely admit to being largely ignorant about the pros and cons.